FTSE Spreads Rise Despite S&P Downgrades and Struggling Greek Talks
UK Market Comment, 16 January 2012
Closing comments from Chris Beauchamp, Market Analyst, IG Index:
As the first day of the week drifts to a close, the FTSE looks set to finish around 15 points higher, after a rather quiet day.
Although it would cause pain to some, it has to be said that life can be quite boring without the Americans.
The absence of US traders from today’s markets has led to a distinctly lacklustre day, with the FTSE shifting listlessly from gains to losses and then back again.
In a sense, this is the calm after the storm; both the S&P downgrade and the failure of Greek debt talks were not exactly unanticipated, so markets have remained fairly sanguine as the new week gets underway.
Even comments from Ernst & Young about a new UK recession have been insufficient to disrupt the library-like atmosphere of markets today.
The US recovery on Friday night means that markets have opted not to panic, with demand for defensive stocks helping to offset losses in racier assets like banks.
It seems that European traders are happy to wait for their US counterparts to rejoin the fray.
News flow has been fairly limited all day, with only news that Greek officials had departed for Washington to seek help from the oracles at the IMF disrupting the eerie calm.
More talks on Greece will begin tomorrow, providing plenty of opportunity for politicians and officials to surprise markets with unguarded statements.
How and where to spread bet on:
FTSE, where to find free charts, live pricing, how to trade etc >> FTSE Spread Betting UK Shares, where to find free charts, live pricing, how to trade etc >> UK Shares Spread Betting
The above comments do not constitute investment advice and neither IG Index nor Clean Financial accept any responsibility for any use that may be made of them.
IG Index >>
"With IG Index you get all the normal advantages of Spread Betting plus..." >> read
IG Index review.
UK Market Comment, 13 January 2012
Closing comments from Will Hedden, Sales Trader, IG Index:
Heading into the close, the FTSE 100 looks set to finish the day firmly in the red, down around 40 points.
All this morning, it looked as if risk appetite was hanging by a thread. Concerted efforts by S&P have caused the thread to snap.
The slow retreat turned into a rout during the afternoon, as rumours of multiple downgrades for Eurozone states by the ratings agency have been rampant.
Although at this point we don’t know the exact situation, it seems that Germany has escaped the axe, but France looks decidedly at risk.
Usually rumours of a downgrade of France are accompanied by frantic denunciations from Paris, but today these have been strangely absent.
As a result, people have begun to assume that France’s AAA rating has met its Waterloo.
Although markets have pulled back from their lows, they still seem to have been shaken out of the narrow range seen so far this year.
It seems that the Eurozone crisis now firmly back on the agenda, helped on the way by news that talks between Greece and its creditors have broken down again.
This, coupled with the possibility of Debt Ceiling Crisis 2 occurring in the US, might suggest we could be seeing the beginning of the lurch lower than many had feared was on its way.
How and where to spread bet on:
FTSE, where to find free charts, live pricing, how to trade etc >> FTSE Spread Betting Indices, where to find free charts, live pricing, how to trade etc >> Indices Spread Betting
The above comments do not constitute investment advice and neither IG Index nor Clean Financial accept any responsibility for any use that may be made of them.
IG Index >>
"With IG Index you get all the normal advantages of Spread Betting plus..." >> read
IG Index review.
Risk Warning: Financial Spread Trading and CFDs carry a high level of risk to your capital. You may lose more than your initial investment. They may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
Article provided / approved by IG Index which is authorised and regulated by the Financial Services Authority (FSA), FSA Register number 114059.
'FTSE Spreads Rise Despite S&P Downgrades and Struggling Greek Talks' edited by AG, updated 16-Jan-12
Related Articles:
UK Market Trading, updated 21-May-12
The Late Trading Update - A quick look at the markets as they close with insight from one of the leading Spread Betting Companies...read article: UK Market Trading.
UK Market Spread Trading, updated 17-May-12
Free spread betting market updates - A daily look at the spread betting markets as they close with views and opinion from one of the leading Spread Trading Companies...read article: UK Market Spread Trading.
Index of UK financial market trading articles - the regular closing market comments from IG Index...see Index.
Q) Average Trading Results?
A) Get free spread betting tips, offers, price updates, important news and more! All Free - Click here!
Risk Warning:
Please note that spread betting and CFD trading carry a high level of risk to your capital. You can lose more than your initial deposit. These products may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
* Tax law is subject to change or may differ if you pay tax in a jurisdiction other than the UK.
